ASX-listed international education technology company Schrole Group (ASX:SCL) will be looking to rapidly upscale its teacher recruitment software following firm commitments for $1.25 million as part of a share placement.
The recruitment pioneer has delivered some impressive results throughout the financial year, including an alliance with international educators ISS group, which has seen the number of schools using Schrole services more than double.
Schrole will be looking to maintain the momentum through the placement, with funds to be used to drive sales and increase its in-house software development capability.
The company has said it will be looking to use its emboldened in-house development team to roll out a new revenue generating product through its existing technology platform.
Commenting on the placement, Schrole Managing Director Rob Graham said:
“We welcome the support of both existing and new investors in this fundraising which strengthens the Company’s financial position as it continues to drive commercial outcomes. The addition of several new institutional investors to the register is particularly pleasing and we believe their support helps to validate our technology platform.
“The major teacher recruitment period for the core international school client base occurs annually between August and November. This period also represents a key sales period for Schrole’s Advantage software-as-a-service teacher recruitment platform. We are confident that we are well placed to capitalise on the strong growth anticipated in this market, underpinned by continued growth in the number of international schools globally.
“These funds will enable the Company to enhance its in-house software development capability in the leadup to this important sales period and to ensure the scheduled improvements to the Advantage platform are deployed in good time,” he said.
The placement, which was supported by advisors Altor Capital and Henslow, received commitments from wholesale and sophisticated investors.
156,250,000 shares will be issued at 0.8 cents per share, representing a 24.5% discount to the 15-day volume weighted average price.
Settlement of the placement is anticipated to occur on Friday, 3 May 2019.
